Network World Reports That Novell Will Lay Off 25% of Its Workforce

SOUTHBOROUGH, MA — SEPTEMBER 1, 2000 — Network World, the leader in Network knowledge, is publishing a story today on its web site ( about the latest moves Novell is rumored to make in response to the networking giant's worsening finanacial situation. As early as next week, sources say, Novell is expected to hand out pink slips to a quarter of its workforce. Novell could lay off up to 1,300 of its 5, 500 employees to bring expenses in line with diminishing revenues. The layoffs will come on the heels of a string of defections from upper management, and amid speculation that additional executives are close to leaving. Novell's last major layoff cost 17% of its workforce their jobs in the fall of 1997.

Meanwhile, sources tell Network World that a year-long debate continues to rage within Novell over a radical recovery plan that would spin off its hotter technologies into a separate company unencumbered by Novell's withering NetWare legacy. Plans to spin off the new company have been marked by inertia and indecisiveness with Novell, sources say. Although the company is known to want to make its chief architect, Drew Major, a principal in the new organization, it has retained executive search firm of Heidrick & Struggles to hunt for a general manager/president. However, when in the past month Heidrick & Struggles proposed two qualified candidates for the position, Novell executives balked and cancelled scheduled interviews, sources say.

This story and others about Novell can be viewed at (